A PROJECT REPORT ON

INSURANCE AS AN INVESTMENT AVENUE

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NAME OF THE PROGRAMME: BACHELOR OF MANAAGEMENT

STUDIES
COURSE TITLE: INTERNATIONAL FINANCE
COURSE CODE: BMSFIN601

SUBMITTED BY

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Date of Submission:

Name of the Course Mentor: Ms Sreelatha S. Rajaram

 TABLE OF CONTENTS

Sr.No Description Page No

1 DECLARATION 1

2 GROUP MEETING ATTENDANCE RECORD 2

3 CHAPTER I INTRODUCTION

4 CHAPTER II CONCEPTUAL FRAMEWORK

5 CHAPTER III DATA ANALYSIS AND

INTERPRETATION

6 CHAPTER IV CONCLUSION

7 BIBLIOGRAPHY
 DECLARATION

WE DECLARE THAT THIS ASSIGNMENT IS AN ORIGINAL

WORK SUBMITTED BY THE FOLLOWING GROUP MEMBERS
WHO HAVE ALL ACTIVELY MADE A CONTRIBUTION. ANY
OTHER WORK OF SIMILAR NATURE HAS BEEN
APPROPRIATELY REFERENCED IN THIS ASSIGNMENT.

GROUP No:
PROGRAMME: BACHELOR OF MANAGEMENT STUDIES
COURSE TITLE: INTERNATIONAL FINANCE
COURSE CODE: BMSFIN601
ASSIGNMENT TITLE: A PROJECT REPORT ON INSURANCE
AS INVESTMENT AVENUE

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 GROUP MEETING ATTENDANCE SHEET

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 CHAPTER: 1
INTRODUCTION
The insurance industry is one of the fastest growing industries in the country
and offers large growth Opportunity to the investors. When compared with the
developed foreign countries, the Indian life insurance Industry has achieved
only a little because of the lack of insurance awareness, ineffective marketing
Strategies, poor affordability and low investment in life insurance products.
The study is beneficial to Understand the comparative rate of return of
insurance companies further it is important from insurance Companies’ point
of view. What are the difficulties and limitations faced by them, it also helps to
understand The role performed by the advisor to achieve the desired goal
through planned strategy. The huge and ever Rising population levels in our
country provide an attractive opportunity but still majority of Indian lives are
Un-insured. The study is basically intended to discover and examine the
factors affecting investor’s decision Towards investment in insurance policy.
Understanding Insurance as an Investment:
Insurance, at its core, functions as a contract between an individual and an
insurance company. In exchange for regular premium payments, the insurer
agrees to provide financial protection against specific risks outlined in the
policy. These risks can range from life events such as death or disability to
property damage, liability claims, and healthcare expenses. However, beyond
its protective function, certain types of insurance also offer opportunities for
investment and wealth accumulation.

Types of Insurance Products for Investment:

1. Life Insurance: Life insurance policies come in various forms, including
term life, whole life, and universal life. While the primary purpose of life
insurance is to provide a death benefit to beneficiaries upon the
insured’s passing, certain policies, such as whole life and universal life,
also accumulate cash value over time. This cash value component can
serve as an investment vehicle, offering tax-deferred growth and
potential for borrowing against the policy’s value.
2. Annuities: Annuities are insurance contracts designed to provide a
steady stream of income during retirement. They come in several
types, including fixed, variable, and indexed annuities. Fixed annuities
offer guaranteed interest rates, while variable annuities allow for
 investment in a selection of underlying funds, and indexed annuities
provide returns linked to the performance of a market index. Annuities
offer tax-deferred growth potential and can serve as a reliable source
of retirement income.
3. Health Insurance: Health insurance is essential for managing medical
expenses and safeguarding against unforeseen healthcare costs.
Certain health insurance plans, such as health savings accounts
(HSAs) and flexible spending accounts (FSAs), offer opportunities for
tax-advantaged savings and investment growth. Contributions to these
accounts are tax-deductible, and funds can be invested in a variety of
investment options, including mutual funds and stocks.
4. Long-Term Care Insurance: Long-term care insurance provides
coverage for expenses associated with extended medical and custodial
care, typically required as individuals age. Some long-term care
insurance policies offer a cash value component or a return of premium
feature, providing potential investment benefits in addition to protection
against long-term care expenses.

Benefits of Using Insurance as an Investment Avenue:

1. Diversification: Incorporating insurance products into an investment

portfolio can enhance diversification by adding assets with unique risk
and return characteristics not correlated with traditional investments
like stocks and bonds.
2. Tax Advantages: Many insurance products offer tax-deferred growth,
meaning that investment earnings within the policy are not taxed until
withdrawn. Additionally, certain insurance policies offer tax-free death
benefits to beneficiaries, making them an attractive estate planning
tool.
3. Protection: Insurance provides a layer of protection against various
risks, including premature death, disability, illness, and long-term care
needs. By addressing these risks, insurance can safeguard assets and
provide financial security for individuals and their families.
Considerations and Risks:
While insurance can offer compelling investment opportunities, it’s essential to
consider several factors and risks before incorporating insurance products
into an investment strategy:

1. Costs and Fees: Insurance products often come with fees and
expenses, including premium payments, administrative charges, and
fund management fees. It’s crucial to understand these costs and
assess their impact on overall investment returns.
2. Complexity: Insurance contracts can be complex and may involve
intricate terms, conditions, and provisions. It’s essential to thoroughly
review and understand the terms of any insurance policy before
purchasing to ensure it aligns with your financial objectives and risk
tolerance.
3. Liquidity: Some insurance products, such as annuities and permanent
life insurance policies, may have restrictions on liquidity and access to
cash value. Withdrawals or surrenders may incur penalties or tax
consequences, limiting flexibility in managing financial needs.
4. Market Risk: Certain insurance products, such as variable annuities
and indexed universal life insurance, expose investors to market risk,
as investment returns are tied to the performance of underlying assets
or market indices. It’s crucial to assess your risk tolerance and
investment horizon when considering these products

The insurance sector is fundamentally rooted in risk management. All

policies written are analyzed with various risks considered, and
actuarial analysis is performed to understand the statistical likelihood of
certain outcomes better. Based on variances between statistical data
and projections, policyholder premiums are adjusted, or benefits are
reevaluated. Generally, premium amounts paid within the insurance
sector are a function of the risk associated with the related individual,
property, or item being insured. One of the more interesting features of
insurance companies is that they are essentially allowed to use their
 customers' money to invest for themselves. This makes them similar to
banks, but investing happens to an even greater extent. This is
sometimes referred to as "the float." Not all insurance companies offer
the same products or cater to the same customer base. Among the
largest categories of insurance companies are accident and health
insurers; property and casualty insurers; and financial guarantors. The
most common types of personal insurance policies are auto, health,
homeowners, and life. Most individuals in the United States have at
least one of these types of insurance, and car insurance is required by
law. Life insurance companies mainly issue policies that pay a death
benefit as a lump sum upon the death of the insured to their
beneficiaries. Life insurance policies may be sold as term life, which is
less expensive and expires at the end of the term or permanent
(typically whole life or universal life), which is more expensive but lasts
a lifetime and carries a cash accumulation component. Life insurers
may also sell long-term disability policies that replace the insured's
income if they become sick or disabled

Current status of insurance companies in India

1. The insurance industry in India has witnessed an impressive growth
rate over the last two decades driven by the greater private sector
participation and an improvement in distribution capabilities, along with
substantial improvements in operational efficiencies. In FY24 (until
September 2023), non-life players’ saw a premium income increase by
14.86% year-over-year to Rs. 1,43,802 crore (US$ 17.29 billion) due to
strong demand for health and motor policies. The Indian non-life
insurance industry logged 14.86% growth during the first half of FY24
as compared to 15.30% growth for the same period the previous year.
The business growth for the first half of FY24 was driven by health
(especially the group segment), motor, and crop insurance.
2. According to the latest data released by the insurance regulator –
the Insurance Regulatory and Development Authority of India - LIC
improved its market share by 67.72% as of October, a gain of 447
 basis points (bps). At the end of 2021-22, private players had a 36.75%
share of the life insurance market, while LIC had 63.25%.
3. According to S&P Global Market Intelligence data, India is the
second-largest insurance technology market in Asia-Pacific, accounting
for 35% of the US$ 3.66 billion insurtech-focused venture investments
made in the country

Importance of insurance:
Insurance works like a cushion which helps you or your family bounce back
financially after an unfortunate event. Whether it's business or family both can
benefit immensely from insurance. It plays a crucial role in safeguarding
individuals, businesses, and society as a whole against financial risks and
uncertainties. Its importance cannot be overstated due to several key
reasons.
Firstly, insurance provides financial protection against unforeseen events
such as accidents, natural disasters, illness, and death. In times of crisis,
insurance can alleviate the burden of hefty medical bills, property damage
costs, or loss of income, allowing individuals and families to recover and
rebuild their lives without facing crippling financial hardships.
Secondly, insurance promotes economic stability and growth by spreading
risks across a large pool of policyholders. This risk-sharing mechanism helps
mitigate the impact of large-scale losses on businesses, communities, and the
overall economy. Without insurance, businesses might hesitate to invest or
expand due to the fear of significant losses, hindering economic development.
Moreover, insurance fosters a sense of security and peace of mind among
individuals and businesses. Knowing that they are protected against potential
risks enables people to pursue their goals, invest in their future, and make
long-term plans without constant worry about the uncertainties of life.
Additionally, insurance plays a vital role in risk management by encouraging
preventive measures and risk reduction strategies. Insurers often offer
incentives and discounts for implementing safety measures, which not only
minimizes the likelihood of losses but also promotes safety awareness and
responsible behavior.
Furthermore, insurance is instrumental in fulfilling legal and contractual
obligations. Many laws and agreements require individuals and businesses to
carry insurance coverage, such as auto insurance for drivers or liability
insurance for businesses operating in certain industries.

1. Peace of Mind: Having insurance coverage offers individuals and

businesses peace of mind, enabling them to pursue their goals, make
long-term plans, and invest in their future without constant worry about
potential financial setbacks.
2. Encouraging Preventive Measures: Insurers often incentivize
preventive measures and risk reduction strategies, promoting safety
awareness and responsible behavior among policyholders.
3. Legal and Contractual Obligations: Many laws and agreements
mandate insurance coverage for certain activities, such as auto
insurance for drivers or liability insurance for businesses, ensuring
compliance with legal and contractual requirements.
4. Fulfilling Financial Responsibilities: Insurance helps individuals and
businesses fulfill their financial responsibilities by providing
compensation for damages or losses caused to third parties, as
required by law or contractual agreements.
5. Supporting Social Welfare: Insurance contributes to social welfare by
providing financial assistance to individuals and families in times of
need, helping them recover from adversity and rebuild their lives.
6. Promoting Long-Term Planning: With insurance coverage in place,
individuals and businesses can engage in long-term planning with
confidence, knowing that they are protected against unexpected risks
and uncertainties.
7. Enhancing Resilience: By offering financial protection and support
during challenging times, insurance enhances the resilience of
individuals, businesses, and communities, enabling them to bounce
back stronger from setbacks and adversity.
8. Supporting Retirement Planning: Certain types of insurance, such as
life insurance and annuities, can serve as valuable components of
 retirement planning, providing financial security and income
replacement during retirement years.
9. Preserving Intergenerational Wealth: Life insurance can help preserve
intergenerational wealth by providing beneficiaries with a financial
cushion to maintain their lifestyle, pay off debts, or invest in the future
after the policyholder's death.
10. Promoting Innovation: Insurance encourages innovation by providing
coverage for new technologies, products, and ventures, allowing
businesses to take calculated risks and explore new opportunities
without the fear of catastrophic financial losses.

Features of Insurance:
1. Coverage of unexpected events: Insurance provides financial
protection against unexpected events like accidents, natural disasters,
or health issues. It helps cover the costs associated with these events,
reducing the financial burden on individuals or businesses.
2. Financial Compensation: Insurance policies often include benefits
that provide financial compensation in case of covered events. For
example, health insurance can reimburse medical expenses, while
property insurance can cover the cost of repairs or replacements.
3. Liability Coverage: Insurance can also offer liability coverage,
protecting individuals or businesses from legal claims and expenses if
they are found responsible for causing harm or damage to others.
4. Customization Options: Insurance policies can be tailored to meet
specific needs. You can choose coverage limits, deductibles, and
additional coverage options based on your individual requirements.
5. Peace of Mind: One of the most significant features of insurance is
the peace of mind it provides. Knowing that you have financial
protection in place can alleviate worries and uncertainties, allowing you
to focus on other aspects of your life or business.

Types of insurance:
1 Health Insurance: Health insurance helps individuals and families
manage the costs of medical care. It typically covers expenses such as
doctor visits, hospital stays, prescription medications, preventive care,
and sometimes dental and vision care.
2 Life Insurance: Life insurance is a contract between an individual
(the policyholder) and an insurance company, where the insurer agrees
to pay a designated beneficiary a sum of money upon the death of the
insured person.
3 Auto Insurance: Auto insurance provides financial protection against
physical damage and bodily injury resulting from traffic collisions and
against liability that could arise from incidents involving vehicles.
4 Homeowner’s Insurance: Homeowner’s insurance is a type of
property insurance that provides financial protection against damages
to a home and its contents, as well as liability for accidents that occur
on the property.
5 Travel Insurance: Travel insurance is a type of insurance designed to
cover unexpected expenses and losses that can occur while traveling,
both domestically and internationally.
6 Business Insurance: Business insurance, also known as commercial
insurance, is a type of coverage designed to protect businesses from
financial losses arising from various risks and liabilities.
7 Long-Term Care Insurance: Long-term care insurance is a type of
coverage that helps cover the costs of long-term care services, such as
nursing home care, assisted living facilities, and home health care, for
individuals who have difficulty performing everyday activities due to
chronic illness, disability, or cognitive impairment.
8 Umbrella Insurance: Umbrella insurance is a type of liability
insurance that provides additional coverage beyond the limits of other
insurance policies, offering broader protection against lawsuits and
financial losses.
9 Cyber Insurance: Cyber insurance, also known as cyber liability
insurance or cyber risk insurance, is a type of coverage designed to
protect businesses from financial losses and liabilities resulting from
cyberattacks, data breaches, and other cyber incidents.
10 Earthquake Insurance: Earthquake insurance is a type of coverage
that helps protect homeowners and renters against financial losses
resulting from earthquakes, including damage to structures, personal
belongings, and additional living expenses incurred due to
displacement

Benefits of Insurance:

1.Financial Safety for Family: They provide cover against life’s

uncertainties and protect you against losses arising from different
unexpected events in life.
2.Safety of Financial Status: Certain events like medical emergencies
can have a significant impact on your cash flow management.
Insurance ensures you don’t have to pay out of pocket for such
situations.
3.Wealth Creation Goals: Insurance policies like ULIPs give you
investment opportunities and help you fulfil your essential financial
goals.
4.Wealth Preservation: Life insurance policies like endowment and
money back plans are some of the safest long-term investments
possible. These plans help you preserve your wealth from inflation and
taxes for long periods.
5.Wealth Distribution: Few investment plans offer the kind of safety
offered by life insurance pension plans. After retiring at the age of 60,
you can live up to 100. Only life insurance pension plans can
guarantee a regular income for that period.
CHAPTER: 2
REVIEW OF
LITERATURE
1)Josni Jose 2)Prajitha Prasannan
The authors M C Garg and Anju are of the opinion that “the Insurance market is likely
to see changes in the Spheres of Marketing Mix. They feel that the customer-driven
market would result in many flexibilities and Innovations in Product, Pricing,
distribution channels and Communication mechanism. The authors have Attempted
to study the nature, process and pattern of Marketing Mix in Life Insurance
companies in India”. According to Mr. Vinay Kumar Sinha, “LIC aims to sell about 42
lakhs policies to the financially weaker Section of the society during the current fiscal
against 15.4 lakhs sold in the last year. With the establishment Of a technology
platform and tie-up with NGO’s, micro finance institutions and the Self Help Groups,
the Penetration of such products are growing. Micro insurance products of LIC are
customized offerings to cater To the distinct needs of the most vulnerable low income
sections of Indian population”.Mr. Mohan Kumar, MD, Link-Insurance Broker
Company (P) Ltd., “strongly feels that the high rate of Attrition among Life Insurance
agents is resulting in large number of policies remaining under services”.The author
T Sri Jyothi “opines, even after taking so many measures to educate the rural people
about the Benefits of Insurance, still the penetration in rural areas has not improved
much. This is because the lack of Awareness, motivation of rural customers and
failure of timely settlements of claims by insurers. In some Cases, the claim
settlement process took years and has become a demotivating factor for the
development of Rural insurance. If tapped properly, this segment is poised to
become one of the most profitable segments for Insurance”. Her article, author
Sabera says, “that the Insurance Industry in India is undergoing a major change. As
the Private players entered into the market, the competition has risen for the public
sector companies. The Competition has also increased among the private players
and the main competition lies in a variety of Products provided to customers, in the
pricing of the products and the service they are providing”

Rollno 34
Dr. A. Mustafa (2012) This book name clearly gives an indication that it is an
Overview of entire Insurance Industry. The chapters included in this book are
Introduction about Insurance, Risk In Insurance, Insurance Agency, Annuities,
Company’s Profile, Indemnification, Fundamental Principles Of Life Insurance,
Marines Insurance, Fire Insurance, And Miscellaneous and is has concluded with the
Last chapters on contracts of insurance. In this book, third chapter gives details
about the Insurance-Agency. In most insurance transactions, there is an
intermediary, usually an Insurance agent or broker, between the buyer and the
insurer. The role of the Intermediary is to scan the market match buyers with insurers
who have the skill, to Capacity, risk appetite and financial strength to underwrite the
risk, and then help the Client select from competing offers.

Roll no 35
Bhavani, G., & Shetty, K. (2017).
Impact of demographics and perceptions of insurance on investment avenues.
SSRN The primary purpose of this study is to investigate how investment choice gets
affected by the demographics and perceptions of the investor. Investor's behavior is
influenced by many factors at the time of investment decision making. Demographic
profile and perceptions play an important role to select a particular choice of
investment. This paper helps to enhance the knowledge on different investment
avenues like bank deposits, life insurance policies, mutual funds and equity which in
turn will be highly useful to the financial advisors as it will help them advise their
clients regarding these avenues with respect to their demographic profiles, the
results of this research shows that the most investors have little knowledge on the
investment avenues for their investments. Mann Whiteny 'U'test, Kruskal-Wallis has
been conducted to test the hypotheses with the help of SPSS.Logistic regression
results of this study proves that investors' age, gender, education and occupation
significantly influences the selection of investment avenues. Behavioral finance is
new emerging science which focuses on understanding the psychology effects on
investment decision.

Roll no 37
Palanivelu, V. R., & Chandrakumar, K. (2013, March).
A study on preferred investment avenues among salaried peoples with reference to
Namakkal Taluk, Tamil Nadu, India. In International conference on business and
accounting, Thailand (pp. 20-23). Venture is the work of assets on resources
determined to acquire pay or capital appreciation. Today, the most significant factor
is investment. Individuals are acquiring more, yet they don't have any idea where,
when and how to contribute it. A legitimate comprehension of cash, its worth, the
accessible roads for speculation, different monetary foundations, the pace of
return/risk and so on, are fundamental to effectively deal with one's money for
accomplishing all consuming purpose. Through this review, an examination has been
made into favored speculation roads among salaried people groups in Namakkal
Taluk, Tamilnadu, India. The outcomes feature that specific variables like training
level, mindfulness about the ongoing monetary framework, period of financial
backers and so on… have huge effect while choosing the speculation roads. Using a
structured questionnaire, the study is based on personal interviews with salaried
individuals. In fact, a self-assessment test is used in this study to determine individual
investors' preferred investment options. The distribution of a closed-ended
questionnaire serves as the primary source of data for the study. The information has
been broke down utilizing rate and chi-square test with the assistance of measurable
programming. There are huge quantities of venture open doors accessible today. In
this paper will momentarily look at how the salaried people groups dealing with their
speculations.

Roll no 39
Dadhich, Manish. An Empirical Study of Investment Pattern of Indian Insurance
Companies:
A Case Study of Public and Private Insurance Companies. Book Rivers, 2022. Life is
brimming with gambles; man generally attempts to lessen risk by being a social
individual and chance unwilling. An advanced age technique for sharing gamble
through monetary co-activity prompted the improvement of the idea of protection.
Extra security is all around recognized as a foundation that disposes of hazard,
subbing conviction for vulnerability and comes to the ideal guide of the family in
lamentable occasions. The protection business is the foundation of the economy and
assumes a unique part in giving one of the most imperative administrations required
for the country's quick development. In India, the protection area was nationalized
with a target to arrive at each circle of this nation yet in January 2000, Legislature of
India laid out Protection Administrative Advancement Authority (IRDA) to oversee,
control and improvement of this area. India has 24 life safety net providers, including
Life coverage Enterprise of India which overwhelms in the business.

Roll no 40
Sathiyamoorthy, C. & Krishanmurthy, K. (2015)
studied that the investment is undertaken with the expectation of return. He explained
that the insurance companies should design their products on the basis of the
customers’ needs and should try their best in conveying what they have to offer that
will bring them more benefits than the others’ policies or ventures. However, while
taking investment related decisions various factors are taken into account such as
age, education, income of the investors etc. He Examined the various indicators such
as growth in total number of offices life insurance companies, growth with regard to
individual agents workings in life insurance industry, growth of premium income and
life insurance business growth etc. compared with the performance of private players
of this with LIC. However the study concluded that the Life insurance industry has
progressed marvellously from 2000 onwards in terms of the above mentioned
indicators. However, this study further concluded that salaried class investors will
concern about the safety of the investment rather than high returns.

Roll no 41
Sanjay Kanti Das Asian Journal of research in Banking and Finance 2 (6), 70-
86, 2012
Structural changes have followed the transformation of India in 1991 from a highly
regulated & inward oriented to an outward looking economy in which the state
domination in most spheres of activity is giving way to private enterprise. The service
sector in general & financial sector in particular has to play an important role in this
change. In the various studies on the financial markets, it is observed that the share
of rural & semi-urban areas in both money & capital market are too low. All of them
suggested that for the balanced development of financial market, taping of rural &
semi-urban savings is necessary. In this paper, an effort is made to study the
investment habit and preferred investment avenues of the households. This study
examines the investment attitude, their preferences & knowledge about capital
market institutions & instruments. The study reveals that in most cases investors
across all categories found them to be safer with taking up the insurance policies. It
is also observed that most of the respondents show their keen interest towards the
insurance products so as to get tax benefits, life protection and average profitable
investment avenues. This is perhaps the most striking features of general investors
and the most important factor that influences the investment decisions. Further, it is
observed that the level of income also influences the investment decisions. Higher
income group shows relatively high preference towards investment in share market,
conversely lower and average income group shows keen preference towards
insurance and banks as the most preferred investment avenues.

Roll no 42
SAMRIDDHI: A Journal of Physical Sciences, Engineering and Technology 14
(01 SPL), 72-75, 2022
Life is full roller coaster and twist and turns. Insurance policies are safeguard against
uncertainties of life. Human life is a most important property and for keeping this
properly financially safe with minimum risk, life insurance is the tool which provides
financial protection to the person and his family at the time of uncertain risk or
damage. Life insurance provides both safety and protection to individual and also
encourages savings among people. LIC plays a crucial role in the wellbeing of
human being by assisting insurance to millions of peoples. In this paper we tried to
identify investor attitude towards different investment product of the LIC from Nagpur
region. The primary object of the study is to analyze the variety of investment options
of the investors and to study the customer’s attitude on investing in life insurance
companies. The second objective of this research are analyzing the factors
influencing the investor for investing in insurance.

Roll no 43
International Journal of Advanced Engineering and Recent Technology 29 (1),
47-60, 2018
Investors have a lot of investment avenues to park their savings. The risk and returns
available from each of these investment avenues differ from one avenue to another.
The investors expect more returns with relatively lesser risks. In this regard, the
financial advisors and consultants offer various suggestions to the investors. The
available literature relating to the investors’ attitude towards investment avenues is
very little and failed to provide a lot of information. The main features of investments
are security of principal amount, liquidity, income stability, approval and easy
transferability. Investment avenues are available such as shares, bank, companies,
gold and silver, real estate, life insurance, postal savings and so on. The required
level of returns and the risk tolerance decided the choice of the investor. The
investment may be differ choices from national savings certificates, provident fund,
mutual fund schemes, insurance schemes, chit funds, bank fixed deposits, and
company fixed deposits, company shares, bonds/debentures, government securities,
postal savings schemes and real estate. It would be concluded that in this fast
affecting world, we save get extra money. Added risk directs to more profit.
Therefore, in this paper, the researcher wants to check the earlier research work
based on investors among the investment avenues to get a thought about the
investment pattern.

Roll no 44
Sonali Patil, Kalpana Nandawar IOSR Journal of Economics and Finance 5 (2),
09-17, 2014
Investment is an activity that is engaged in by people who have savings ie
investments are made from savings, or in other words people invest their savings. A
variety of investment options are available such as bank, Gold, Real estate, post
services, mutual funds & so on. Investors are investing their money with the different
objectives such as profit, security, appreciation, Income stability. Researcher has
studied the different avenues of investments as well as the factors while selecting the
investment with the sample size of 40 salaried employees by conducting the survey
through questionnaire in Pune, India. The study is based on personal interviews with
salaried peoples, using a structured questionnaire. Actually, the present study
identifies the preferred investment avenues among the individual investors using self
assessment test. The study is based on primary sources of data which are collected
by distribution of a close ended questionnaire. The data has been analyzed using
percentage, chi-square test, and Person Correlation Coefficient with the help of
statistical software. The researcher has analyzed that salaried employees consider
the safety as well as good return on investment on regular basis. Respondents are
aware about the investment avenues available in India except female investors.

Roll no 45
CHAPTER : 3
DATA ANALYSIS AND
INTERPRETATION
GENDER:-

INTERPRETATION:-
The above pie charts shows that out of 74 samples

● 55.41% of respondents are male

● 44.59% of respondents are female

29
 OCCUPATION:-

INTERPRETATION :-
● Students: 76.7% Students represent the largest demographic group in the dataset,
comprising over three-quarters of the total population.
● Salaried Employees: 16.4% Salaried employees make up a substantial portion of the
population, accounting for more than one-sixth of the total.
● Businessmen/Businesswomen: 4.4% Business professionals, including both
businessmen and businesswomen, constitute a smaller segment of the population.
● Retired Individuals: 1.4% Retired individuals form a relatively small fraction of the
population, representing those who have ceased full-time employment due to age or
other reasons.
● Others: 0% The "Others" category, which includes occupations not explicitly
mentioned or unspecified individuals, accounts for zero percent in the dataset.

43 – Aashik Naik
 Q.Do you know about Investing in insurance?

INTERPRETATION:-
● The pie chart indicates a substantial disparity in the level of familiarity with investing
among the surveyed population. With 82.2% of respondents indicating that they are
knowledgeable about investing, it suggests a prevalent understanding or experience in
financial markets, asset allocation, or other investment strategies
● The 17.8% of respondents who reported not knowing about investing may lack
exposure to financial concepts, possibly indicating a need for education or resources
to increase their financial literacy.

45 – Karthik Nair
Q.How frequently do you invest money?

INTERPRETATION:-
This data suggests that a significant portion, 34%, of respondents invest money
irregularly, meaning they don't adhere to a specific schedule. Monthly investments are
the next most common at 18%, followed by annually at 11%. Daily and quarterly
investments are less common, each at 4% and 3% respectively. Weekly investments
are the least common at 3%. This indicates a variety of investment habits among
respondents, with irregular investments being the most prevalent.

44 – Gayatri Nair
Q.What types of insurances are you familiar with?

INTERPRETATION:-
The pie chart shows that, 47 people responded to Life Insurance, 56 people
responded to Health Insurance, 34 people responded to Family Insurance, 31 people
responded to House Property insurance and 1 person responded to Others. This shows
that most people are interested in investing in Health Insurance as compared to other
insurance

39 – Divya Mhatre
Q.What are your primary reasons for investing in insurance?

INTERPRETATION:-
According to the above pie chart, 56.2% of the respondents choose financial security
as their primary reason for investing in insurance. This shows that a majority of the
respondents prioritize insurance for securing their financial well-being. 23.8% of the
respondents selected assets protection as their primary motivation for investing in
insurance. This suggests that a significant portion of the respondents value insurance
for safeguarding their assets.20% of the respondents chose tax benefits as their
primary reason for investing in insurance. This shows that a smaller but still notable
group of respondents see insurance as a way to gain tax advantages.

42 – Manisha Mishra
Q.How would you rate your understanding for investing in any
insurance company?

INTERPRETATION:-
My understanding of investing in insurance companies falls within the "Excellent"
range, around 28 out of 30. I possess a comprehensive knowledge of the insurance
industry, including its regulatory framework, key performance indicators, and risk
factors. I can analyze financial statements, evaluate underwriting practices, assess
investment portfolios, and understand the impact of macroeconomic trends and
regulatory changes. Additionally, I can identify competitive advantages, such as brand
strength, distribution channels, and technological innovations, that can drive long-
term value for investors. My expertise enables me to make informed investment
decisions and navigate the complexities of the insurance sector effectively.

35 – Chandrashekhar Mehta
 Q.What are your expectations regarding returns on your
investment?

INTERPRETATION:-
The above table shows that out of 100 samples,
● 38% respondents have high expectations on returns, these individuals are optimistic
and hopeful about the potential gains they can achieve.
● Also 58% people have moderate expectations on returns, they are taking a balanced
approach, not aiming too high or too low, and are likely looking for steady and
reliable outcomes.
● 4% respondents have low expectations on returns, these individuals might be more
cautious or conservative in their investment

37 – Aditi Mhatre
Q.How much risk you are comfortable with when it comes to
investing in insurance?

INTERPRETATION:-

● Analyzing the chart can give us insights into people's risk tolerance and their

willingness to invest in different ways.

● It can also help us understand the overall sentiment towards investing and

how people perceive the potential risks and rewards.

● In the given pie chart 75.3% people are comfortable with moderate risk 16.4%

with high ani 8.3% with low risk

41 – Sairaj Mhatre
Q.How long do you plan to hold your insurance investment ?

INTERPRETATION:-
The pie chart illustrates your intended duration for holding your insurance investment,
showcasing a balanced approach across short, medium, and long-term horizons.
Notably, a significant portion, 45.2% is allocated for long-term holding, indicating a
strategic focus on stability and growth over a moderate timeframe. Moreover, the
substantial allocation of 42.5% for medium-term holding reflects a commitment to
wealth accumulation over an extended period, leveraging the benefits of
compounding and allowing for the weathering of market fluctuations. While short-
term holding constitutes a smaller proportion at 12.3%, it likely serves as a liquidity
buffer or opportunistic allocation for shorter-term goals.

34 – Deon Mathew
Q.What factors do you consider while evaluating the base for
investment in Insurance?

INTERPRETATION:-
22.11% of the respondents prioritize potential returns, indicating that they are focused
on the financial gains they can potentially achieve through their insurance
investments. 14.74% of the respondents consider risk level as a crucial factor. 12.63%
of the respondents take fees into account. 14.74% of the respondents prioritize
company reputation. This suggests that they value the reputation and credibility of the
insurance company they choose to invest with, as it can provide them with a sense of
trust and security.35.79% of the respondents chose "all of the above." Lastly, it seems
that none of the respondents selected "others" as a factor. This implies that the
majority of respondents found the provided options to be comprehensive in capturing
the factors they consider when evaluating their insurance investments.

40 – Harsh Mhatre